Don’t miss out on the ‘free five hundy,’ KiwiSavers!

Get a head start now and be sure not to miss out on a ‘free five hundy’ next year. BNZ has this life hack sorted for you.

Did you know there’s an incentive put in place by Government that basically means you could receive up to $521.43 a year just for contributing to your KiwiSaver account? It’s called the KiwiSaver Member Tax Credit (MTC). Here’s the deal:

Each year, if you qualify, the Government will contribute 50 cents for every dollar you contribute to your KiwiSaver account – up to a maximum of $521.43, to help you save towards your first home or retirement.

To get the maximum credit, you need to contribute at least $1,042.86 during the MTC year, which runs from 1 July to 30 June the following year, and be eligible for the full year.

It’s not all or nothing either. If you qualify, then every dollar you contribute to your KiwiSaver account, up to the maximum, will qualify you for a 50 cent contribution from the Government.

Anything else you need to know?

If you joined KiwiSaver part way through the MTC year, or were eligible for only part of the year (for example, you turned 18 during the MTC year), then your maximum MTC entitlement will be worked out on a pro-rata basis dependent on how long you qualified to receive it. Head to for more information and eligibility criteria.

Remember – It’s not all or nothing. If you qualify, then every dollar you contribute to your KiwiSaver account, up to the maximum, will qualify you for a 50 cent contribution from the Government.

Don’t want to settle for less? Then make sure your regular contributions are going to be at least $1042.86 by 30 June 2017 and that you’re eligible for the whole MTC year. If you need to make a lump sum contribution, then consider doing it before then.

Am I contributing enough?

It’s all up to you to check if you’re contributing enough into your KiwiSaver account to make the most of this credit. However, it can be tricky to know exactly how much you’ve contributed in any one year, especially if you’ve been contributing directly through your salary or wages. That’s because there can be a delay between your contributions being collected by your employer and these making their way through the system and into your KiwiSaver account.

Here’s some tips to make sure you don’t miss out on maximising your MTC:

  • As a general rule, if you’re on an annual salary or wages of $35,000 or more and are contributing at a minimum rate of 3% from your pay, then the chances are you’re not going to miss out.
  • If you make voluntary contributions of at least $21 a week or more (for the whole MTC year), you also shouldn’t miss out on the next MTC.
  • You can register and log in to ‘My KiwiSaver’, a service provided by Inland Revenue, where you can see all of the contributions you’ve made into your KiwiSaver account via your salary or wages.
  • If you’re a BNZ KiwiSaver Scheme member, log in to BNZ Internet Banking to see what your member contributions add up to. Remember, some of your more recent contributions from your pay may not have arrived into your KiwiSaver account as yet.
  • Check your pay slips to see how much you’ve contributed.

Are you on track to get $36,000?

  • If you put in $1,043 each year from the age of 18 until the age of 65, the government will have given you $24,507. If you get an average return of 5% per annum on this, you’d have more than $36,500 by the time you access it (even after tax and inflation). That’s on top of your own contributions, your employer contributions and any other investment returns you’ve received. Cha-Ching! Head to to find out more.

BNZ Investment Services Limited, a wholly owned subsidiary of Bank of New Zealand (‘BNZ’), is the issuer and manager of the BNZ KiwiSaver Scheme. A copy of the BNZ KiwiSaver Scheme product disclosure statement is available on Investments made in the BNZ KiwiSaver Scheme do not represent deposits or other liabilities of BNZ or any other member of the National Australia Bank Limited group, and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of BNZ or any other member of the National Australia Bank Limited group, the Supervisor, and any other director of any of them, the Crown or any other person guarantees (either fully or in part) the performance or returns of BNZ KiwiSaver Scheme or the repayment of capital.

This blog is solely for information purposes [and is only for BNZ KiwiSaver Scheme members who are New Zealand residents]. None of the matters in this blog are personalised financial advice. We recommend that you seek financial advice specific to your personal situation and goals from an Authorised Financial Adviser. No representation or warranty is made as to the accuracy, reliability or completeness of any statement made in this blog. Neither BNZ nor any person involved in the preparation of this blog accepts any liability for any loss or damage arising out of the use of, or reliance on, all or any part of this blog. The information and recommendations are the personal views of the author and do not necessarily reflect the views of BNZ.

BNZ Authorised Financial Advisers’ Disclosure Statements are available on request and free of charge. Past performance is not an indication or guarantee of future performance.